Malaysia's AirAsia forming airline JV with Tata

Malaysia's AirAsia Bhd(AIRA.KL), Asia's largest budget carrier, plans to launch a regional airline in India in a venture with the Tata group, marking a return to aviation for India's biggest business house.

By Al-Zaquan Amer Hamzah and Anurag Kotoky

KUALA LUMPUR/NEW DELHI (Reuters) - Malaysia's AirAsia Bhd(AIRA.KL), Asia's largest budget carrier, plans to launch a regional airline in India in a venture with the Tata group, marking a return to aviation for India's biggest business house.

The new airline, AirAsia India, will be managed by the Malaysian company and based in Chennai. Serving smaller cities, it will enter a fiercely a competitive Indian market that has proved challenging for AirAsia.